BC Partners has raised over E5.5bn for its eighth fund, the largest European buyout fund raised to date. The fund was raised in less than 5 months and was heavily oversubscribed. Investors in previous funds increased their commitments significantly and represent 90% of the capital raised for BC European Capital VIII. BC Partners raised over E3.5bn for its seventh fund BC European Capital VII back in July 2000.
The new fund puts BC Partners in the position where it will be able to arrange acquisitions with a value of over E6bn without having to co-invest with other private equity firms.
The fund close follows reports that Blackstone is in fund raising mode with a $11bn fund, which looks set to exceed Goldman Sach’s record $8.5bn fund.
The new fund will enable BC Partners to secure larger investment opportunities than it has done in the past. The fund expects to acquire between 10 to 20 companies over the next 5 years, with a cumulative enterprise value of close to E20bn. Since 1986, BC Partners has invested in 58 companies with a total transaction value in excess of E34bn. The average size of the group’s buyouts since 1997 is E1.2bn.
The firm’s most famous investment to date is the E5.65bn buyout of SEAT, the leading yellow pages and directory services provider in Italy and the largest LBO in Europe at the time.